Agarbatti manufacture is one of the traditional industries in India. It is a business that is carried on by thousands of people, especially in the regions where festivals and ceremonies are held. This is an industry that has high profit margins and also low manpower requirements.
High profit margins
The Agarbatti industry has become one of the most lucrative small scale businesses in India. This is due to the high demand of the product in various countries. If you want to start this business from home, there are a few steps that you need to follow. These steps can help you start your own Agarbatti production unit.
The first step is to secure a legal entity for your agarbatti making business. You also need to register the business with the Government and obtain a GST number. You will need to invest around Rs. 80000 to 1.5 lakhs to get started.
Besides investing in the right tools and machinery, you also need to hire dedicated staff. Your machine will only be useful if you have a good team behind it. They will be responsible for collecting raw agarbatti, storing and drying them.
You can also add perfume to your agarbatti to boost your profit. However, do not forget to follow certain safety measures. Firstly, you must wash your hands after handling the raw material.Secondly, you should ensure that your work area is well ventilated. Finally, you should always use a cool and dry place to store your agarbatti.
As for the agarbatti making machines, you can choose from a wide range of options. Typically, a normal semi-automatic machine can cost up to 1-2 lakhs. Meanwhile, a fully automatic machine will cost you around 4 lakhs.
Before you invest in the agarbatti making machinery, you should check out the market. It is important to know the best companies in your area. Look for a company that offers reasonable prices, good warranty, and maintenance services. Also, check whether the service provider is in your locality.
The best part about the agarbatti making machine is that it can produce a large amount of agarbatti in a short period of time. For example, a good machine can produce 100 kg of raw agarbatti in just 10 hours.
Nevertheless, if you are not ready to invest a huge amount, you can simply buy a manual handmade agarbatti production unit. While the process may take longer, you can still get a good return on your investment.
Low manpower requirements
Agarbatti is a popular product in India. The incense stick is made from bamboo sticks and burns to release a fragrant fumigant. It is usually used during religious ceremonies and social functions.
There is a small but lucrative industry that focuses on the production of this incense stick. To start this business, you will need to buy the agarbatti making machine and raw materials. You will need at least three or four machines, which are capable of producing up to 10 kg of raw agarbatti per hour. These machines are lightweight and easy to operate.
Another key feature of the agarbatti manufacturing machine is its agarbatti dryer. This device is beneficial for rainy months and can keep your agarbatti fresh.
In addition to agarbatti making machines, you will also need to purchase other materials such as dried herbs, perfumes, and charcoal dust. The cost of these will vary depending on the total production capacity.
There are many companies that sell agarbatti making machines. It is important to find a company that provides reliable service and a warranty. Also, check the location of the company.
One of the best places to start this business is Kerala. The state boasts of a high literacy rate, and the property is relatively inexpensive. Moreover, you will find it easier to recruit better-educated candidates.
When it comes to agarbatti manufacturing, it is essential to take note of the most efficient procedure and most relevant technology to make the best product. You will also need to follow a good marketing strategy. Lastly, you need to choose a place with a good reputation and good local support.
Agarbatti is a fairly simple business to start, and there is no need to hire a big workforce. If you have a small budget, you can still start this business and see good returns. However, be sure to adhere to the laws of the land. Having a license will help you avoid any fines.
Besides, you can create your own brand with a good marketing campaign. Getting your trademark registered will also help you avoid imitations.
Traditional industry in India
Agarbatti, or Incense Sticks, is an important part of Hindu rituals. The sticks are used in religious ceremonies and social functions. They are made of thin bamboo culms coated with paste.
They are marketed in India and abroad. In addition to retail, they are also sold through distributors. Indian exports of agarbatti and dhoop are increasing every year.
The agarbathi industry employs about four lakh people. About 80 per cent of the workers are women. Their daily wage is fixed at Rs 250.
It is an export-oriented industry and has huge potential. Several companies are in the market. However, Chinese manufacturers are challenging the Indian market. As a result, new innovations are being developed by the R&D department.
The agarbatti industry has been growing at a compound annual growth rate of 3.6%. It is a labour-intensive cottage industry. There are several pre-requisites for establishing a small-scale agarbatti business. Firstly, you need to obtain a trade license, a NOC from the city pollution control board, and a MSME Udyog Adhaar registration.
In addition to this, you need to source raw materials, plan your manufacturing space, and devise a marketing strategy. To start, you can rent a small-scale space. Once you’re up and running, you can expand your operations to a dedicated manufacturing unit.
You can also use a kiosk to sell your products. If you have a sufficient electricity and water supply, it’s possible to set up a small-scale agarbatti manufacturing unit.
However, your agarbatti manufacturing business will only grow with proper marketing. You can advertise online, use TV advertising, or distribute samples through door-to-door.
Investing in raw material for at least a year is important. Depending on the type of incense sticks you make, you may need two to ten employees.
To promote your business, you can advertise on TV and search engine. Also, it is advisable to register your enterprise with the ROC.
The industry is also dependent on forest products for the raw materials. Developing indigenous sources is challenging. Luckily, KVIC provides a 5 per cent subsidy for machinery purchases. Hence, you can get the entire project financed.
Investing in agarbatti manufacturing unit during festivals
One of the most traditional industries in India, agarbatti manufacturing has seen a revival. The government has worked to improve the manufacturing process and increase employment opportunities. This industry, which is mostly dependent on rural India, has huge potential.
Investing in agarbatti manufacturing can be a great opportunity. Not only can you get a profit, you can also provide a livelihood for the community. Agarbatti has immense demand in the local market and in the international markets. In addition, this business can also contribute to India’s rural industrialization agenda.
Investing in an agarbatti manufacturing unit can be done either on a large scale or on a smaller one. If you decide on a smaller setup, you will need to invest in equipment. You will need a wooden rolling desk, a weighing balance, a kadhai, and aluminum vessels. Your total capital expenditure should be around Rs.4 lakh.
The market share for the agarbatti industry in India has increased by 15 percent. India has been able to boost its share in the world market through lowering import duties. It has also created vast job opportunities in the highly labor-intensive industry.
Several government projects have been launched to develop the indigenous market. They aim to enhance the ability of artisans to manufacture in their own communities and to enhance the overall product. These projects will also help build the country’s export potential.
Women in the rural sector have a crucial role to play in packaging. Developing an agarbatti factory will give women an opportunity to create a stable living. Additionally, a successful company will be able to showcase its brand through various mediums.
The government of India has also taken steps to encourage the domestic incense stick industry. In 2009, the agarbatti sector received a boost when it was recognized as a handicraft. Despite these efforts, there are still huge gaps in the supply chain.
To boost agarbatti manufacturing, the government of India has created a series of programs. Some of these include the Khadi and Village Industries Commission’s Agarbatti program, the Self-Reliant India programme, and the Fragrance and Flavor Development Centre in Kannauj.
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